More Fuel for the Fire: Subprime = FHA

[GCJim]

Some more fuel for the fire. Subprime = FHA, but it looks like there is some oversight here. Some of the loopholes may finally be closing. Time will tell.

http://www.msnbc.msn.com/id/24580917/

 

[PropertyEconomics]

FHA was the original subprime loan. Thats what it was developed for. It was only after the conventional market adopted the business plan that it was abused beyond belief.

 

[Elliott]

I've noticed the MB's still in business are suddenly FHAers. But,
they don't have FHA # with the orders and they say things like,
"Need $$$$". One small step up from Skippy. Same crap, different day.

 

[Lloyd Bonafide]

FHA loans probably didn't produce a huge number of REOs in recent years, because they didn't have a big market share in the last 3-5 years or so. They couldn't compete with the 80/20 loans.

Now that those loans are gone, it looks like FHA's market share will expand greatly. Do you think there will be many FHA loans in foreclosure around 2010 to 2012, since they are making 97% loans now, sometimes in areas where prices are declining by 10-20% per year? :new_blowingup:

 

[GCJim]

Lloyd,
That's a nice little emoticon ya got there......GROSS, but NICE!!

 

[c w d]

I've noticed the MB's still in business are suddenly FHAers. But,
they don't have FHA # with the orders and they say things like,
"Need $$$$". One small step up from Skippy. Same crap, different day.

Yeah, I've got one MB right now dicking me around for the FHA case number. I've requested the FHA case assignment sheet like 4 times now. So far he has sent me a hand written FHA case # on the order form, a hand written FHA case # showing my license number on the order form and a hand written FHA case # that says "Assigned to <license #> on loose leaf. Obviously the guy is hoping I'll complete the appraisal before assigns the number to see if I'll "make value". Really! He can't be THAT stupid. Worse, he thinks I am THAT stupid.